China smartphone brands such as Xiaomi continue to lead India market despite increased scrutiny, Canalys data shows

Chinese smartphone brands shipped three out of four handsets sold in India in the second quarter despite a government crackdown targeting Chinese firms, although the Indian market experienced a sequential decline due to weak demand, a Canalys report showed.

India’s smartphone market grew 12 per cent in the June quarter compared to the same period last year, on a lower baseline as the industry was suffering from the effects of a second wave of Covid-19 in 2021, according to a Canalys report on Wednesday.

Shipments fell 5 per cent compared to the first quarter of 2022, marking a third consecutive quarter of declines due to weakening demand in the Indian market.

Chinese smartphone makers accounted for four of the top 5 players in the country, led by Xiaomi Corp with 7 million units shipped. Collectively, Chinese players shipped 76 per cent of all smartphones in the market in the past quarter, according to Canalys.

In total, the combined market share of Chinese vendors was slightly down from the same period last year, when it shipped 80 per cent of all handsets in the market, according to Sanyam Chaurasia, analyst at Canalys. He added that competitors including Samsung and Apple have been catching up.